Debt issues for Spanish toll road

Financial issues are now impacting heavily on Spain's Radial 4 (R-4) highway. The companies involved, Autopista Madrid Sur Concesionaria Espanola and Inversiones de Autopistas del Sur, are facing high levels of corporate debt. However traffic volumes have been lower than expected, while the cost of the project has been high.

Spain’s tough economic conditions have resulted in difficult times for the country’s private toll highway operators. A fall in revenue has combined with a tough financial situation to make it difficult to pay off debts. Spain’s Ministry of Public Works is offering potential help with a new viability plan for tolled highways. This would involve merging weak, loss-making highways with long concession contracts, with highways that are profitable. Several options meet this criteria but the sector considers the